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http://dx.doi.org/10.11627/jkise.2014.37.4.231

A Study of Inventory Models for Imperfect Manufacturing Setup Considering Work-in-Process Inventory  

Ullah, Misbah (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University)
Kang, Chang W. (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University)
Qureshi, Shehereyar Mohsin (Department of Industrial and Management Engineering, ERICA Campus, Hanyang University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.37, no.4, 2014 , pp. 231-238 More about this Journal
Abstract
Optimum lot size calculation for real world manufacturing environment has been focused since last few decades. Several extensions have been made to the basic economic order and production order quantity models to realize the possible practical situations in industry. However, focus on work-in-process inventory has been ignored relatively. This paper provides a comprehensive review of the models developed for group technology based manufacturing environment focusing on work-in-process inventory. Models have been extended from a perfect manufacturing conditions to an imperfect manufacturing situation considering rework, rejection and inspection. Optimum lot size has been evaluated using a simple algebraic optimization approach. Significant parameters are highlighted using sensitivity analysis for the developed models. Numerical example is used to illustrate the utilization of such models in day-to-day production setups and the impact of significant factors' variation on total cost and optimum lot size.
Keywords
Work-In-Process; Imperfect; Lot Size; Economic Order Quantity;
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Times Cited By KSCI : 2  (Citation Analysis)
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